New ptj Issue 3-2019
Digitalization in the Pipeline Industry
The new PALIMEX®-880/-855
The two-tape system reliably protects your pipeline – and saves your budget.
Operations & Integrity Management and Compliance in an age of IIOT
Steve Hill >>> Honeywell Process Automation Solutions
New Technologies Drive Operational Performance by Connecting Smart Stations to Distribution Networks
Rossella Mimmi >>> Emerson Automation Solutions
Intelligent Predictive Maintenance in the context of Maintenance 4.0 for Oil & Gas Industry
Dr. Rama Srinivasan Velmurugan >>> GAIL (India)
Digital disruption will occur in Midstream as it is underway in other asset intensive industries
Sam Hemeda >>> Arundo Analytics
The Big Data Revolution: Detecting Pipeline Leaks, Encroachments and more Using Satellites
John Zhou & Caroline Beck >>> Satelytics
Best Practices for Cybersecurity Diagnosis in Industrial Environments
Ernesto Landa >>> Compania Operadora de Gas del Amazonas

ADNOC, KKR and BlackRocK sign US$4 billion pipeline infrastructure deal (Copyright: ADNOC)

The Abu Dhabi National Oil Company (ADNOC) has signed a US$4 bn midstream pipeline infrastructure partnership agreement with US-based institutional investors KKR and BlackRock. ADNOC is expanding through strategic partnerships since 2017. With the contract a newly formed entity known as Adnoc Oil Pipelines will lease ADNOC’s interest in 18 pipelines for a 23-year period.

ADNOC will be the majority owner of Adnoc Oil Pipelines, holding a 60% share. The BlackRock and KKR consortium will own the remaining 40% stake. The sovereignty over the pipelines and management of pipeline operations is with ADNOC. The investor firms are required to make an upfront payment of $4bn to Adnoc.

In total, the 18 pipelines have a length of over 750 km and a capacity of 13 million barrels per day. the pipelines transport stabilised crude oil and condensate across ADNOC’s offshore and onshore upstream concessions. The shipping takes place to Abu Dhabi’s key takeaway outlets and terminals or on to global energy markets.

Adnoc Group CEO Dr. Sultan Al Jaber said: “This transaction is another example of the innovative steps we are taking to constantly optimise our assets and capital and deliver sustained value to both ADNOC and the UAE. Most importantly, this transaction marks a milestone for ADNOC and Abu Dhabi as it paves the way for further significant foreign direct investment into the UAE.”

The third Global Infrastructure Investors fund is investing in the pipelines through KKR , while BlackRock’s investment is through its Global Energy & Power Infrastructure Fund (GEPIF) series. The BlackRock CEO Laurence Fink said: "We believe that today’s agreement among ADNOC, BlackRock and KKR will be followed by many more such partnerships to invest in the future growth of the region."

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